What Is a Long-Term Bond Yield?

Fisherian decomposition was an economist way of trying to figure out why yield curves were usually upward sloping. The term premium is what we expect that if you own a five-year bond, then you probably want a little bit more of a return to own a 10-year bond because you're owning it for a longer period of time. We live in a dynamic world where various participants are operating in different parts on the yield curve and sometimes have different perceptions about growth and inflation expectations at different points around the curve.